Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-13

At the risk of sounding like a broken record or conspiracy theorist, I'd like to continue highlighting the points I've been making about the 'market makers' and the effect they've had on the price for the last two years.

As shareholders we should be interested in this as it's the value of your assets which are being effected. I'm just providing pointers for you to observe for yourself and see if you can see the pattern. It will require fairly consistent monitoring throughout the day but some of you will be doing that and some will have already noticed this.

I'd like to keep this theory front of mind in this thread to keep pressure on the 'market makers' to stop doing this. They would argue that they are just trading a stock, however if your trading has the effect of influencing a market in certain ways, what you're actually doing in the eyes of ASIC and the ASX is market manipulation.

This fact that @Hiepn2_2005 has pointed out - that is, that there are very few sell orders in the market after close is an indication of the real retail selling.



Retail sellers tend not to place day only orders (orders which are automatically removed from the bid and offer sides of the market after close of trade), they place orders that remain until filled or 30 days whichever is sooner. Institutions on the other hand do place day only orders, especially the set of institutions which I've suggested have been fencing the SFX market in for the last two years.

The limited number of real orders on the sell side is not a new phenomenon, it's been like this for a couple of years (if you check after market). However, at the start of each day the round robin orders are placed in the market on the bid and offer to about 5 price steps apart in each direction giving the impression of a deep buy and sell market at the specified price (for a long while it's been 45 - 48c.

What this means is that any real buyers of sellers look at the last traded price and the market depth and if they need money for a holiday or home improvements etc (there are always some natural sellers) they are forced to sell at the price determined by the market makers. This tactic has also been used to force out some holders of larger size who once they have decided to sell, some because they have been holding for so long, are forced to do so st the fenced in price. The same applies for any real buyers which hear about SFX and make their way into the stock, they buy at what the stock is offered at.

All this is able to be perpetuated by the market makers (which as a result prevents a natural equilibrium fair market price from emerging) because the amount of real buying and selling has tended to be about balanced over a two week period and furthermore the volumes sought by real buyers or sellers are of a size manageable to the market makers (approx 150T - 500T a week). Under these circumstances the market maker can afford to go long or short to provide volume at that fenced in bid or offer price (depending on whether the real transaction is a buyer or seller) knowing that they will be able to square up their position (with a healthy trading margin of about 1.5c) within the week from a real buyer or seller.

Whenever they find themselves long after buying stock at let's say a bid price at 46c, they remove their sells from the offer revealing a very thin natural market, then conveniently the bid side of the market gets artificially stronger due to some of their buy orders. They proceed to buy a few shares at 46.5 and then put some bids in at 46.5, buy what few shares might be left on the offer at 47 and start putting their shares up for sale at 47.5 moving to 48 and forcing any real buyer on that day to pay the 47.5 and 48 for shares, they will usually finish off their selling at 47 and 46.5 after removing their prop bids and getting ready to set doing all over again.

so, if they were to continue their fencing in activities as the market currently stands in the low 50's, you'd see several sell orders from them appear on the offer around 53.5 and 54 and 54.5 and 55 and several buy orders between 50 and 52.5 to give the market a sense of depth (the top bid and offer order is usually small, just a few hundred or few thousand shares, unless it's bid or offer price at which they'd like to move volume).

Any time higher trading volumes come into the stock, for example after a positive announcement, they do the same, working in with the higher send allowing the stock to rise slightly, knowing that once the buying interest starts to show signs its coming to an end they can reestablish dominance and push the price down knowing that many of those who have bought hoping to trade the stock will become natural sellers in the short term helping to push the price down and allowing them to buy back what they have sold into the run. Because external players are cautious of SFX due to its price history and exactly this pattern I'm talking about, the buy volumes that come in after good announcements tend to be short lived and this is how they have successfully smothered any significant runs, knowing that once they make the sell side look heavy the momentum stops due to the impression that there are many stale holders of SFX wanting to exit, but this isn't the case, it is the market makers which time and time again create an impression of selling when in fact there really is very little natural selling in the SFX market. A notable exception to when they took their foot off the brake and didn't create an impression the run was coming to an end was for two or three weeks prior to the capital raising where the stock was allowed to run upto 68c.

In the current market at 53c with very real selling around, if they hold off what you'd be left with is a very thin sell side, and it would become apparent that the real market equilibrium sell price is much higher than what has become considered the norm due to this activity.We are now in a period where the first stage of commissioning has been completed successfully, KMS has successfully started to put ore into the plant and within two weeks the company should have indications of how the processing is going. If production grades and rates are met then the stage 1 cashflows are what should govern the share price or at least the valuation (ie development risks dre behind us). Remember no production was forecast for calendar year 2023 and if things go well we'll have extra cash from three bonus months of production.

Based on the research reports the value based on stage 1 cashflows is $1.20+ and if you factor in stage 2 it's over $2.00, so I didn't see why the shareprice wouldn't after development risks are gone won't be over $1.20, more like $1.50. The issue we have is that the activities I've been speaking of have created a false sense of where the valuation belt lies, and if this is not corrected then even after production starts the share price could continue to under perform for the same reasons.

If people here are interested in my further commentary of the actions of the so called 'market makers' should I see them continue then like the post and I'll take that as an indication of whether or not I should continue to call them out in this forum for the benefit of those reading or whether I should just take my concerns to the ASX with posting here.

Good luck everyone, maybe the next few week will be good for us. I hope that finally shareholders will get to see the value of their investment rise to catch up to where the project currently stands after so long of the share price underperforming valuations.